Dunamu Distributes 4,100 NFTs for Climate Change Campaign

Taiwan to review crypto ETFs amid developments overseasThe Financial Supervisory Commission (FSC) in Taiwan has disclosed its close examination of foreign cryptocurrency futures products and exchange-traded funds (ETFs), signaling a potential shift in its regulatory approach.According to a report in Chinese-language financial newspaper, Taiwan’s Commercial Times, the FSC aims to gradually ease restrictions, aligning its stance with global market conditions.Photo by bordercollie 1712 on UnsplashResponding to crypto ETF activity internationallyThe Taiwanese regulator is carrying out this exploration against the backdrop of significant global developments. The possibility of the Federal Reserve cutting interest rates and the upcoming review by the U.S. Securities and Exchange Commission (SEC) of the spot bitcoin ETF in January next year are key factors influencing the FSC’s considerations.The anticipation surrounding the Bitcoin halving in April, combined with speculation that a spot bitcoin ETF approval is imminent in the U.S., have contributed to a 145% surge this year in Bitcoin’s unit price, adding momentum to that regulatory contemplation in Taiwan. There has been speculation that BlackRock, the world’s largest fund manager, is already preparing for the approval of its iShares Bitcoin Trust ETF.Recognizing the potential impact of a Bitcoin index stock fund, contingent on SEC approval and subsequent public investment permission, the FSC is closely monitoring global trends.Closer to home, it emerged last month that Hong Kong’s Securities and Futures Commission (SFC) is actively exploring the possibility of permitting retail participation in a spot crypto ETF. Domestic investment banks in Taiwan, attuned to these developments, have expressed longstanding interest in introducing similar crypto products.The FSC draws parallels with global counterparts, citing the proliferation of cryptocurrency futures products and ETFs in various markets.Cautious regulatory reviewAdopting a phased approach, the FSC emphasizes self-discipline and standards in relaxing regulations around crypto ETFs. This cautious strategy aligns with Taiwan’s historical prudence, previously observed in the delayed approval of cryptocurrency ETFs and blockchain ETFs due to concerns over volatility and speculative nature.As Taiwan contemplates a significant move into the cryptocurrency ETF domain, industry players remain cautiously optimistic. While some had considered private placements for overseas cryptocurrency ETFs, challenges such as tightened regulatory supervision and concerns over errors and price lags prompted a reevaluation.Earlier this month, ETF issuer ProShares launched its short Ether-linked ETF product on the New York Stock Exchange’s Arca, using the ticker symbol SETH. Spot bitcoin ETFs have been launched in Canada, Germany, Australia and Brazil. The products have also been made available via tax havens such as the Cayman Islands, Jersey, Liechtenstein and Guernsey.The regulator in Taiwan hints at a potential strategy involving “cryptocurrency concept ETFs.” These funds could invest in cryptocurrency-related software and hardware vendors, offering investors exposure to the industry without direct linkage to cryptocurrency price fluctuations.

FTX Seeks Exclusion of Dubai Unit from Bankruptcy ProceedingsFailed crypto exchange FTX, which filed for bankruptcy in November, is now aiming to exclude its Dubai unit from the ongoing restructuring proceedings unfolding in the United States.Photo by Roman Logov on UnsplashNo previous business activityThe motion, filed with the bankruptcy court in Delaware on Wednesday, comes as FTX contends that its Dubai branch had not engaged in any business activities prior to the bankruptcy declaration, making its participation in the rehabilitation efforts unlikely.In the recent court filing on August 2, FTX put forth its argument that its Dubai unit, FTX Dubai, held a balance sheet that was solvent. Consequently, the exchange proposed that initiating a voluntary liquidation process in line with the laws of the United Arab Emirates (UAE) would expedite the distribution of its positive cash balance, settling liabilities, and liquidating assets.FTX Dubai, a wholly-owned subsidiary of FTX’s European arm, holds a sum of approximately $4.5 million across various accounts. However, $4 million of this amount remains restricted by the Virtual Assets Regulatory Authority (VARA) of Dubai, serving as a security measure for its license as a virtual asset service provider.Expired licensingFTX Dubai was originally awarded a license by VARA in July 2022, although it never got to a point where it offered any crypto-related services based on that license. On May 31 of this year, FTX Dubai management was informed by VARA that the regulator would not seek to renew the license if FTX Dubai didn’t act to terminate it. The license was subsequently suspended on July 12 by VARA.Licensing could have been useful to a new operator coming in to run the business. Earlier this week, the FTX Debtor filed a restructuring plan that leaves a path open towards relaunching the FTX International business outside of the United States. It’s clear that the current regulatory environment in the US is such that it’s simply not an attractive option to establish a restructured FTX business there.The FTX Debtor and its advisors are engaging with bidders for the business. In establishing a business on the right footing, it may be just as well that licensing will start afresh. To settle market doubts, the new entity will need to achieve a high level of compliance and industry-leading customer protections.FTX Dubai is now anticipated to collaborate with the designated liquidator to carry out essential administrative procedures, ensuring a systematic and efficient execution of the liquidation process. The company’s decision to file for bankruptcy on November 11, 2022, initiated bankruptcy proceedings for a total of 102 associated entities worldwide, reflecting the substantial impact of its financial turmoil.The matter is scheduled to be addressed in the court’s first hearing on August 23, shedding light on how the court will respond to FTX’s motion to remove its Dubai unit from the overarching bankruptcy proceedings in the US. This development underscores the complexities of a cross-border crypto bankruptcy, highlighting the intricacies of global regulatory frameworks in this evolving sector.

Hong Kong and Saudi Arabia Collaborate on Tokenization and PaymentsIn an effort to enhance financial collaboration, Hong Kong and the Kingdom of Saudi Arabia are expanding their ties and focusing on agreements related to tokenization and payments infrastructure.Photo by Ketut Subiyanto on PexelsBilateral meetingOn Wednesday, the Saudi Central Bank (SAMA) and the Hong Kong Monetary Authority (HKMA) held a bilateral meeting to discuss various initiatives aimed at integrating financial services between the two nations. During the meeting, the central banks explored areas such as financial infrastructure development, open market operations, market connectivity, and sustainable development. Additionally, they signed a memorandum of understanding (MoU) to facilitate joint discussions on financial innovation.HKMA chief executive Eddie Yue emphasized the potential for cooperation in fields like economy, trade, sustainable development, finance, and fintech between the two nations. He expressed optimism about the continued development of the relationship and the prospects it holds for the future.SAMA governor Ayman Al-Sayari echoed this sentiment, acknowledging the significance of the MoU in fostering stronger ties and assisting them in the future. “HKMA is an important partner for the Saudi Central Bank. Today’s MoU will support our relationship and contribute to the consolidation of efforts in developing the Fintech industry,” he stated.Tokenization and payment infrastructureNotably, the authorities of Hong Kong and Saudi Arabia also used the opportunity to exchange expertise in tokenization, payment infrastructure, and supervision technologies. This collaboration opens up possibilities for both countries to leverage each other’s strengths in these areas.Hong Kong has been actively participating in various inter-jurisdictional tokenization initiatives. In June, the Bank of China’s investment bank subsidiary, BOCI, issued a $28 million tokenized security in Hong Kong using the Ethereum blockchain. The project utilized Goldman Sachs’ tokenization protocol GS DAP and featured cash tokens representing claims on the Hong Kong dollar.Digital assets firm Ripple Labs has also participated in a HKMA pilot program that implicates real estate tokenization.No crypto discussionHowever, the joint announcement did not explicitly mention any joint efforts related to cryptocurrencies like Bitcoin. It is worth noting that Hong Kong recently allowed retail investors to trade crypto, but Saudi Arabia has not shown any specific plans to promote cryptocurrencies in recent years. In 2019, the Saudi Central Bank issued a warning that Bitcoin is not recognized by legal entities within the country.International collaborationRecent months have seen ever greater collaboration between international central banks and regulators relative to digital assets. Last month Japan’s Financial Services Authority (FSA) joined forces with the Monetary Authority of Singapore (MAS) on its Project Guardian initiative to further explore the potential of digital assets.In May, the central banks of Hong Kong and the United Arab Emirates announced a collaboration to work on cryptocurrency regulations and financial technology development. In the same month, MAS partnered with New York’s Federal Reserve Bank on an initiative that examined the use of central bank digital currency (CBDC) for wholesale cross-border payments.As the financial collaboration between Hong Kong and Saudi Arabia strengthens and other such international partnerships continue to unfold, the focus on tokenization and payment infrastructure and digital assets more broadly signifies a step forward in embracing these innovative financial technologies.